- AUD/JPY fails to extend gains beyond 87 handle, finds major trendline resistance at 87.
- Upside was rejected at major trendline resistance at 87 on Friday's trade.
- The pair extends downside on the day after bearish gap-down open, intraday bias lower.
- Next major support seen at 85.26 (20-DMA), break below could see drag upto 83.74 (Dec 29 low).
- The Japanese yen in demand following Trump's inauguration speech that left markets disappointed.
- Support levels - 85.26 (20-DMA), 85, 84.70 (50-DMA), 83.74 (Dec 29 low)
- Resistance levels - 86.11 (5-DMA), 86.50 (Session high), 87 (Trendline)
Recommendation: Good to go short on rallies around 86.10, SL: 87, TP: 85.25/ 85/ 84.70/ 84
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 48.133 (Neutral), while Hourly JPY Spot Index was at -125.938 (Highly bearish) at 0525 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
